“In Bitcoin, miners compete to publish blocks containing a proof-of-work stamp by repeatedly hashing block headers. In Tezos, block creation is done by bakers. Rather than deriving the right to create a block by finding the solution to a proof-of-work problem, bakers obtain that right when a Tezos token (or rather a roll, see below) they own (or that is delegated to them) is randomly selected to create a block.”Moreover:
“A baker becomes aware of its right to bake blocks a few weeks in advance. When it does so, it is expected to create a safety deposit that will be held for a few weeks. This safety deposit is referred to in the white paper and in various places as a “bond”. In a few other proof-of-stake systems, this deposit is a single static set amount staked by a delegate. In contrast, in Tezos, the deposit dynamically changes depending on the number of blocks a delegate is set to create.”Interesting, right? The full post on Medium does of course offer a deeper insight into this new design, I suggest if you get a moment, that you have a read (it should take you around 6 minutes to do so). What does all of this really mean? Ultimately, we could be seeing a brand-new revolution here in the way cryptocurrencies are ‘gathered’ from the network. Whilst mining has inherent advantages, it seems that baking does too, such advantages include:
- Resistance to DDoS attacks.
- Key Protection.
- Prevention of Mitigating Intrusion